Resistance is futile so they say, but in the case of Bitcoin, resistance is key to any sustained moves higher.

Support and resistance is the first thing anyone involved with technical analysis should learn thoroughly. It’s often referred to as supply and demand.

When a price begins to fall there will be a level where the sellers dry up and there’s more demand from the buy side. Consequently price will begin to turn upward once again.

Usually this happens as a price approaches a previous low. Many are reluctant to sell into a medium or long term low, and often there will be buy orders stacked up waiting for a cheaper entry.

In the case of resistance price can stall as it approaches a previous high, or a test from underneath to a previous low. This type of action turns a previous support level (or low) into resistance. The sellers begin selling and supply outstrips demand.